Dozens of physicians allegedly involved in $130M kickback scheme

A lawsuit filed by a former CFO of Plaza Health Network — a nonprofit network of rehabilitation, skilled nursing and long-term care centers based in Miami Beach, Fla. — alleges Plaza Health was involved in a $130 million False Claims Act and physician kickback scheme, according to a Miami Herald report.

The lawsuit, which was filed under the qui tam, or whistle-blower, provision of the False Claims Act, alleges Plaza Health's board of directors and its CEO William Zubkoff were involved in a scheme to pay kickbacks to dozens of physicians in south Florida in exchange for the physicians referring Medicaid and Medicare patients to Plaza Health facilities.

The lawsuit further alleges Plaza Health submitted false claims to Medicaid and Medicare for therapy services that were never provided to patients or were charged at an inflated cost, according to the report.

Plaza Health's board chairman, Rob Lowy, told the Herald, "The government has not taken any type of formal action against Plaza Health Network. The lawsuit was filed by a disgruntled employee who asserted all types of outrageous claims."

More articles on healthcare industry lawsuits:

68 False Claims Act cases unsealed since October: 5 things to know
DOJ recovers $2.3B in healthcare False Claims Act cases in FY 2014
DOJ requests records from UPMC in False Claims Act case

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